What is the economic profit us airways build training center

Reference no: EM132556041

Question: Managerial Challenge

US Airways (American Airlines) owns a piece of land near the Pittsburgh International Airport. The land originally cost US Airways $375,000. The airline is considering building a new training center on this land. US Airways determined that the proposal to build the new training center is acceptable if the original cost of the land is used in the analysis, but the proposal does not meet the airline's project acceptance criteria if the land cost is above $850,000. Assume the labor and raw materials total $1,720,000. A developer recently offered US Airways $2.5 million for the land. What is the economic profit, opportunity cost, and should US Airways (American Airlines) build the training center at this location? (Chapter 8 Accounting versus Economic Cost)

Submission Details: Response should be no less than 250 words

Include the appropriate calculation if needed

Follow the APA style of writing with in-text citations and a reference list if necessary

Reference no: EM132556041

Questions Cloud

How might the firm benefit from a strategic alliance : How might the firm benefit from a strategic alliance? What are the risks of a strategic alliance and how might those risks be managed?

Calculate net cash provided by operating activities : Christchurch Motors Pty Ltd completed its first year of operations on 30 June 2015. Calculate net cash provided by operating activities

Write an email to ann perkins using an indirect approach : Assume you are part of IT technical support, responsible for resolving calls and inquiries for the organization. The Director of the Project Management Office.

Provide the necessary journal entries to record income taxes : Provide the necessary journal entries in 2020 & 2021 to record income taxes, assuming payment of tax due were made for both 2020 and 2021.

What is the economic profit us airways build training center : US Airways (American Airlines) owns a piece of land near the Pittsburgh International Airport. The land originally cost US Airways $375,000.

Discuss the difference of permanent and temporary difference : Briefly discuss taxable temporary differences and deductible temporary differences. Briefly discuss the difference of permanent and temporary differences.

Prepare the adjusting entry at December : On October 1, 2018, Raven Company issued $400,000 par value bonds dated July 1, 2018. Prepare the adjusting entry at December

Business vision-mission and business plan : Evaluate how well or how poorly the chosen strategy supports that business vision, mission, and business plan. Provide support for your rationale.

Prepare the journal entries in the books of dandelion corp : Compute the amount of gross investment for the lease. Prepare the journal entries in the books of Dandelion Corp. for the year 2020.

User Account

All Pages